Recently, the European Union made headlines by accusing a major tech company, referred to only as X, of violating the bloc’s Digital Services Act (DSA). The findings pointed out various issues with X’s blue checkmark verification system, transparency obligations regarding advertising, and providing public data to researchers.
One of the key areas in which X was found to be lacking was in transparency. The EU noted that changes made to X’s blue check system were preventing users from determining the authenticity of other accounts on the platform. This led to concerns that malicious actors could be using the system to intentionally deceive users, which goes against the established industry practices.
In response to the findings, EU competition chief Margrethe Vestager stated that X does not comply with the DSA in key transparency areas. She highlighted the use of dark patterns by X, which misleads users, the failure to provide an adequate ad repository, and blocking access to data for researchers. Vestager emphasized that the DSA has transparency at its core, and they are determined to ensure that all platforms, including X, comply with EU legislation.
If X fails to address the European Commission’s grievances, the company could face formal action and fines of up to six percent of its global revenue. This is a significant penalty, considering that X is a Very Large Online Platform (VLOP) reaching more than 45 million monthly active users in the EU. The repercussions of these fines could be substantial, given that X was purchased by Elon Musk for $44 billion in October 2022.
The Commission opened a multifaceted DSA investigation into X on December 18th, 2023. In addition to deceptive practices, advertising transparency, and data access for researchers, the investigation also looked into the dissemination of illegal content on the platform and its moderation practices. It is worth noting that part of the investigation is still ongoing, suggesting that further action could be taken against X in the future.
The crackdown on X is part of a broader effort by the EU to enforce its strict rules for big tech companies. Separate DSA probes have been launched to assess whether Meta (owner of Facebook and Instagram) has taken sufficient measures to moderate political, deceptive, or illegal content on its platforms. The EU is also focusing on safeguarding children who use these platforms, indicating a growing concern over the impact of social media on vulnerable populations.
The European Union’s accusations against X highlight the importance of transparency and compliance with established industry practices for tech companies operating in the EU. As the investigation into X unfolds, it remains to be seen how the company will respond and whether it will make the necessary changes to avoid facing formal action and financial penalties. This case serves as a reminder that even the largest tech companies are not above the law and must adhere to regulations set forth by regulatory bodies like the EU.
Leave a Reply